Israel

B/5 Investor Visa

The B/5 Investor Visa is a temporary residence permit that enables foreign investors to live and work in Israel for the purpose of managing and developing a business in which they hold a substantial personal stake. The visa was created under Regulation 5A of the Entry into Israel Regulations (1974) to satisfy the reciprocity requirement for the US E-2 Treaty Investor Visa, and became operational on 1 May 2019. It is administered by the Population and Immigration Authority (PIBA) under the Ministry of Interior. Currently, only US citizens are eligible, as the United States is the sole country listed as a "framework state" in the regulations.

• Must be a citizen of a designated framework state (currently only the United States)
• Must hold at least 50% ownership of the Israeli business venture
• Investment must be "substantial" and committed irrevocably — no fixed statutory minimum, but guidance suggests NIS 800,000–1,000,000 (~USD 220,000–275,000) in most areas, ~NIS 600,000 (~USD 165,000) in priority development areas, and NIS 1,500,000+ (~USD 410,000+) for technology companies
• The business must generate income significantly exceeding the family's livelihood needs
• Investment must not be speculative or unsubstantiated
• No formal educational or professional qualifications required
• No prior illegal residence in Israel

• Valid passport with at least 2 years remaining validity
• Criminal record clearance from all countries of residence of 6 months or more
• Authenticated birth and marriage certificates translated into Hebrew
• 24 months of banking history and source of funds documentation
• Credit reports and three years of tax filings
• Net worth statement
• Detailed business plan (20–30 pages) including market research, financial projections, and staffing plans
• Company registration documents for the Israeli business
• Lease or purchase agreements for business premises
• Insurance policies
• Medical examination

The initial visa is valid for 2 years. Extensions are granted in increments — the first renewal is typically for 3 years, and subsequent renewals for up to 5 years. There is no statutory maximum number of renewals as long as the business continues to meet requirements. Extension applications must be submitted at least 3 months before expiration.

Renewal requires demonstration of continued active business operations, maintained or increased investment, tax compliance, no criminal violations, and a minimum of 8 months annual presence in Israel.

The investor's spouse receives a B/52 visa and children under 21 receive a B/53 visa. Both spouses and children may live, work, and study in Israel without restriction — they are not limited to the investor's business. Key employees who are US citizens may receive B/51 derivative status, and their own family members are also eligible for B/52 and B/53 visas. Application fees for dependant visas are the same as for the primary investor.

Israeli tax residency is triggered by the 183-day presence test or the "centre of life" test under the Income Tax Ordinance. Personal income tax is assessed at progressive rates of 10%–50%. Corporate tax is 23%, and VAT is 17% on business transactions. Annual tax returns must be filed with the Israel Tax Authority. Israel maintains over 55 tax treaties globally.

The process begins with establishing or acquiring a qualifying Israeli business registered and managed within Israel. The investor then files a visa application in person at one of four designated Israeli consulates in the United States: Washington DC, New York, Houston, or San Francisco. A personal interview is required.

After submission, the application is forwarded to an inter-ministerial advisory committee with representatives from the Ministry of Interior, Ministry of Finance, Ministry of Economy, Ministry of Foreign Affairs, and Ministry of Labour. The committee evaluates the application and issues a recommendation to the Minister of Interior, who makes the final decision.

Application fee is NIS 830 for the initial application and NIS 710 for extensions. Total processing time is approximately 6–12 months.

Acceptable sources of funds include business proceeds, family contributions, property sales, inheritance, accumulated savings, and monetary gifts. Investment allocation must generally follow: minimum 50% to core business operations, maximum 25% for operational expenses (rent, salaries), maximum 15% for business vehicles, and maximum 10% for personal accommodations.

The B/5 visa does not automatically lead to permanent residency. After approximately 5–7 years of continuous legal residence, the investor may apply for permanent residency, subject to meeting Hebrew language proficiency requirements, demonstrated community integration, financial stability, and enhanced security clearance. Absence from Israel may not exceed approximately 3 months per year during the progression period.

• The investor may work only in the business venture for which the visa was granted
• The business must be engaged in profit-generating commercial, industrial, or entrepreneurial activities — passive investments in real estate, government bonds, or investment funds do not qualify
• The investor must enter Israel within 3 months of visa issuance
• The investor must maintain a minimum presence of approximately 8 months per year in Israel
• Marginal businesses that merely sustain basic living expenses do not qualify

Links

• https://embassies.gov.il/san-francisco/Newsandevents/Pages/B5-Israel-Investor-Visa.aspx
• https://www.nevo.co.il/law_html/law00/70322.htm
• https://israel-entry.piba.gov.il/

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